Item 20 - Fiscal 2024-25 Mid-Year Budget Update, Appropriation Requests, and Workforce Changes

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FY24-25 Mid-Year Budget Update, Appropriation Requests, and Workforce Changes March 4,2025 Page 7 4 8 6 7 improvements, approved on November 19, 2024, was funded through the FY23-24 allocation, not the FY24-25 budget. Orange County Fire Authority (OCFA) Savings As the FY24-25 budget was being finalized, staff received the final rate increase from Orange County Fire Authority (OCFA). Each year, the budget is developed using OCFA’s projected 4.5% cost increase, which represents the maximum allowable increase under the agreement. Based on this estimate, total charges were projected at $51,507,080. However, the final rate increase from OCFA was 4.06%, resulting in General Fund savings of $212,840 for the City and reducing the total to $51,294,240. Staff is recommending a budget decrease of $212,840 to reflect these savings. Parks, Recreation, and Community Services Facility and Program Improvements The Parks, Recreation, and Community Services Agency (PRCSA) is requesting a one- time appropriation adjustment of $200,000 for the Santiago Gym flooring improvements and Children’s Zoo programming, which were included in the Cannabis Public Benefit Fund budget; however, with the reduction in Cannabis business tax revenue, staff recommends funding these projects with one-time General Fund money. Quality of Life Team (QOLT) Homeless Services Cleaning Contract The expansion of homeless cleanup services, including additional cleaning teams available on evenings and weekends for both scheduled and on-call requests, has led to higher monthly expenses. To sustain current service levels through the end of the fiscal year, the Public Works Agency is requesting a one-time budget allocation of $63,500. As part of the FY25-26 budget process, staff will reassess the recommended QOLT budget. Street Light Utility Costs Streetlight electrical utility costs have exceeded the current budget due to rising energy rates and the installation of over 300 new streetlights. To cover these ongoing expenses and ensure timely payment of utility costs, the Public Works Agency is requesting a recurring budget allocation of $400,000 to address the shortfall. Graffiti Abatement Program On April 5, 2022, City Council approved amendments to the contract to increase the annual funding for Graffiti Removal services and enhance service levels for the public. These additional services help maintain a rapid average response time of 48 hours and address graffiti in high-traffic areas, including railroad properties, arterials, bike trails, and other highly visible locations. To support the annual contract increase and sustain current service levels, the Public Works Agency is requesting a recurring allocation of $56,800. Planning and Building Agency Software Subscription The Planning and Building Agency is requesting ongoing funding of $16,500 for a software subscription covering 50 user licenses. This software supports electronic plan check reviews and will help accommodate increased development activity in the city. By